|
PERSONAL TAXES: The common term for the portion of personal income used to pay personal tax and nontax payments. Personal tax and nontax payments is the official item in the National Income and Product Accounts maintained by the Bureau of Economics Analysis measuring the personal income taxes paid to the government sector on personal income received by the household sector. Personal tax and nontax payments are subtracted from personal income (PI) to calculate disposable income (DI). Personal tax and nontax payments are about 15 percent of personal income and about 13 percent of gross domestic product.
Visit the GLOSS*arama
|
|
|
|
WHOLESALE PRICE INDEX: An index of the prices paid by retail stores for the products they ultimately resell to consumers. The Wholesale Price Index (WPI) was the forerunner of the modern Producer Price Index (PPI) and was discontinued in 1978. Other noted price indexes used to track economic activity are the Consumer Price Index (CPI) and the GDP price deflator. The Wholesale Price Index (WPI) was first published in 1902, and was one of the more important economic indicators available to policy makers until it was replaced by the PPI in 1978. The change to Producer Price Index in 1978 reflected, as much as a name change, a change in focus of this index away from the limited wholesaler-to-retailer transaction to encompass all stages of production. While the WPI is no longer available, the family of producer price indexes provides a close counterpart in what is labeled the Finished Goods Price Index.The importance of the WPI rested with its ability to forewarn later changes in the Consumer Price Index (CPI) and inflation. The WPI's forecasting ability rested with the simply input-output relation for retail stores. In other words, the prices PAID BY retail stores for their inputs are largely passed along as prices CHARGED TO consumers buying these goods as outputs. An increase in the WPI resulting from higher input prices this month, is likely reflected in an increase in the CPI in future months. This forecasting ability was frequently useful for stabilization policies. Suppose, for example, that the Chairman of the Federal Reserve System wanted to prevent inflation. Even though the CPI and GDP price deflator were relatively stable, an increase in the WPI would have prompted the Chairman to initiate contractionary monetary policy, making a pre-emptive strike against inflation.
Recommended Citation:WHOLESALE PRICE INDEX, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: March 28, 2024]. Check Out These Related Terms... | | | | | | | Or For A Little Background... | | | | | | | | | | | | | | | And For Further Study... | | | | | | | | | | | Related Websites (Will Open in New Window)... | |
Search Again?
Back to the WEB*pedia
|
|
|
WHITE GULLIBON [What's This?]
Today, you are likely to spend a great deal of time driving to a factory outlet trying to buy either a birthday gift for your uncle or a pair of red and purple designer socks. Be on the lookout for florescent light bulbs that hum folk songs from the sixties. Your Complete Scope
This isn't me! What am I?
|
|
Much of the $15 million used by the United States to finance the Louisiana Purchase from France was borrowed from European banks.
|
|
"Good judgment comes from experience, and often experience comes from bad judgment." -- Rita Mae Brown ‚ Writer
|
|
DDA Demand Deposits Accounts
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|